iMedia Brands seeks approval of bid procedures, eyes Aug. 4 auction

By Sarah Lizee

Olympia, Wash., July 31 – iMedia Brands, Inc. is seeking approval of bid procedures for its assets, according to a motion filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

The company was previously seeking approval to sell its assets privately to RNN-TV Licensing Co. LLC for $27.45 million in cash, plus interest and fees; a minimum cash shortfall; a credit of $7.5 million plus interest, fees and expenses owed to the buyer in its capacity as a lender under the DIP facility; and assumed liabilities.

However, iMedia said its marketing efforts have been successful and the debtors now have an opportunity to drive higher and better value through a competitive auction process.

“One or more well-capitalized bidders have made clear their readiness, willingness, and ability to proceed quickly to a sale on terms higher and better than those provided by the initial sale transaction,” the company said in the motion.

Under the proposed bid procedures, the company is seeking a bid deadline of 9 a.m. ET on Aug. 3, an auction on Aug. 4, and a sale hearing on Aug. 8.

RNN-TV will not be serving as stalking horse bidder for the assets.

As previously reported, the official committee of unsecured creditors had expressed concerns over the previous sale plan in an objection filed last week.

The committee took issue with the “hyper-aggressive” timeline, which has the sale closing by Aug. 5, only 33 days after filing the sale motion.

The committee also said the debtor had not justified the sale being private.

iMedia Brands is an interactive media company based in Eden Prairie, Minn. The company filed bankruptcy on June 28 under Chapter 11 case number 23-10852.

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